It depends on the meaning of “defect”, because insurers often treat these situations differently. If faulty electrical work causes third party property damage or injury and you are found legally liable, public liability can be the type of cover that may respond, subject to the policy terms. For example, a wiring fault causes a fire that damages a client’s kitchen, and the claim is about the damage to the client’s property.

On the other hand, many liability policies do not intend to pay the cost of redoing, correcting, or improving your own work when there is no resulting damage. For example, you need to return to replace a circuit because it was wired incorrectly, but nothing has been damaged. That redo cost is often the type of cost that can be excluded.

Some policies also include specific state based extensions. For example, an electrician policy may include a Queensland extension that can provide a set amount per occurrence for liability arising from rectifying certain domestic electrical work defects, subject to eligibility and conditions such as being appropriately licensed and performing domestic electrical work in Queensland.